A credit card is a rectangular piece of plastic issued by a bank or a financial service providing company by which the cardholder can borrow the money and can use it for making transactions in things like online shopping, grocery shopping, restaurants, traveling, etc. Using a credit card can be very beneficial as well. There are a number of benefits we can enjoy by getting a credit card.
In this blog, you will get to know that what are the 10 major benefits of credit cards. If you are planning to buy a credit card just go through these advantages and make your mind. Also, share it with your friends and family so that they can also see the benefits of using a credit card.
Top 10 Advantages of Using a Credit Card
Here is the list of some of the major benefits that one can enjoy by using a credit card:
1) Cash Backs
One of the biggest advantages of credit cards is that if you are using a credit card you will enjoy the cashback. Some of the credit cards allow you to get extra cashback on selected spending categories. So you have to select the right credit card according to your spending to get maximum profit out of it. For example, if you are a regular online shopper then choose a card that gives you more profit in online shopping. As an advantage, you will get cashback in return for using the credit card, and these such offers are not on debit cards. so it gives you a great advantage over debit cards.
2) Initial bonus
Most of the credit card gives you a one time bonus at the time of approval of the credit card. This initial bonus can be in the form of offers and reward points which can be redeemed into cash or can redeem for travel, gift vouchers, online shopping vouchers, etc. On the other hand, the debit card does not offer all these initial bonuses.
3) Earn Reward Point
The credit card gives you an opportunity to earn reward points. To earn the reward points you just have to use a credit card and you can earn around one reward point on the spent of 100 rupees. You can collect these reward points and can redeem them for getting gift vouchers, online shopping vouchers, discounts on flights and hotel bookings, etc. Some of the cards even provide you facility to donate your reward points to the charity.
You must select the credit card according to your need as some credit card issuer gives more reward points if you spent the money on the things for which they will be giving extra reward points. For example, some credit cards are profitable for traveling, and by using the credit card in booking hotels and booking flights you will get extra reward points.
4) Increase Credit Score
By the use of the credit card, there is an increase in the credit score which can be helpful to you in getting a loan. To increase the credit score you just have to pay your credit card bills on the time. If you don’t pay them on the time then it can also lead to a decrease in your credit score. On the other hand, you can’t increase your credit score without using a debit card.
So it will be beneficial for you , when you want a loan from a bank , so they will check your credit score on the basis of that you are eligible for the criteria of the loan , and also it will help you in when you want to buy different policy, it can be term insurance and car insurance etc.
It is safe and easy to use a credit card. You should keep some things in mind that don’t share your card details with any other person. And don’t put your card details to the non trusted sites because they can use your card details and can miss use of it. The credit card offers more protection than the debit card in some cases.
6) Purchase Protection
Some credit cards provide purchase protection on the products purchased by the credit card. The protection of the product is against the loss or damage of the product you are buying by burning or theft.
In other terms it is like to have insurance without paying premium , so it is also a great advantage of using credit card .
7) Universal acceptance
The Credit card has universal acceptance one can you credit card for the payment of things of foreign sites and the foreign Transaction fee of a credit card is very low. When you go to a foreign country some merchants don’t accept debit cards for payments. The foreign transaction fees of credit cards lie anywhere between 0.99 to 2.5 percent.
Some purchases are difficult to made with debit cards. The rental companies and hotels recommend making purchases through the credit card as the credit card makes the work easy for them in case the customer damages the car or the hotel property.
8) EMI facility
Some Credit Card offering banks allows the cardholder to pay their bills through EMIs. This EMI facility is very helpful when you are making a big purchase. Taking a personal loan for making a big purchase costs more than paying through EMIs. If you are planning to buy a big appliance or making a big purchase like television, microwave, etc. then this is the best option.
There are different offers available on EMI , no cost EMI is one of them , where you have to just pay the amount in EMI , so it helps a lot to people.
9) Record of the expense
The credit card keeps all the records of the expenditures done by it. All the essential information like when, where, and how much did you spend is provided to you. This can help you to track your expenses and you can create an expenditure strategy for yourself to minimize your expenses.
10) No interest
The Concept of a credit card is that the card will allow you to borrow the money and after that, you can pay the money off to the bank or the card company. The money you take from the Credit card company is taken by you on zero interest. There is a specific period in which you don’t have to give any interest to the credit card company. The interest time period ranges between 45 days to 60 days.
There are a large number of benefits if you have a credit card and using a credit card is very convenient. Share your views about the blog and share the blog with your friend and family to whom you want to recommend to get a credit card. And, if you are planning to buy a credit card or want any financial advice then take a look at the blogs on our other blogs.
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